Palm oil rises on short-covering amid poor weather in Malaysia
Updates with midday prices, trader's comments
KUALA LUMPUR, Sept 18 (Reuters) -Malaysian palm oil futures rose on Wednesday as traders covered their short positions amid poor weather conditions in the world's second-largest producer, with strength in rival oils also lending support.
The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange gained 64 ringgit, or 1.71%, to 3,800 ringgit ($896.65) a metric ton by the midday break.
The recovery in palm oil was due to reduced production capacity caused by poor weather conditions, especially in the northern peninsular states, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
"This resulted in short-covering in the market today," Supramaniam said,referring to traders buying back borrowed securities to close out open short positions at a profit or loss.
Malaysia's meteorology department on Monday issued a continuous rain warning for four states in the north of the country until Sept. 21, with other states forecast to experience thunderstorms, heavy rain and strong winds.
Dalian's most-active soyoil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 added 0.94%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1.05%.
Palm oil tracks price movements in rival edible oils as they compete for a share in the global vegetable oils market.
Cargo surveyors estimated exports of Malaysian palm oil products during Sept. 1-15 rose between 9.1% and 10.2% from a month ago.
Oil prices fell on Wednesday and were set to snap a two-session winning streak ahead of a likely interest rate cut by the U.S. Federal Reserve, as weak macroeconomic data weighed on demand despite the potential for more violence in the Middle East. O/R
Brent crude futures LCOc1 for November were down 0.6% at $73.25 a barrel as of 0458 GMT. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit MYR=, palm's currency of trade, strengthened 0.38% against the dollar, making the commodity more expensive for buyers holding foreign currencies and capping gains.
Palm oil may break resistance at 3,784 ringgit per metric ton, and rise towards 3,864 ringgit, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.2380 ringgit)
Reporting by Danial Azhar; Editing by Subhranshu Sahu and Varun H K
For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01.
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.
* Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11.
Vegetable oils OILS/ASIA1
Malaysian palm oil exports SGSPALM1
CBOT soyoil futures 0#BO:
CBOT soybean futures 0#S:
Indian solvent SOLVENT01
Dalian Commodity Exchange DC/MENU
Dalian soyoil futures 0#DBY:
Dalian refined palm oil futures 0#DCP:
Zhengzhou rapeseed oil 0#COI:
European edible oil prices/trades OILS/E
Berita Terkini
Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
